What is the extent of bp’s operations and initiatives within Kuwait?

Kuwait holds significant importance for us. Our relationship with Kuwait dates back many years, and we highly value the long-term ties and strategic cooperation we have established over time. The Kuwait Oil Concession Agreement of 1934, signed with the Anglo-Persian Oil Company (now bp) and Gulf Oil Corporation (now Chevron), led to the formation of the Kuwait Oil Company (KOC), which discovered the massive Burgan field in 1938. The first oil exported from Kuwait was loaded onto the bp tanker named British Fusilier in 1946. Following the liberation in 1992, we were the first international oil company (IOC) to be invited back to Kuwait for the redevelopment of oil and gas fields. Today, we have been entrusted to support two of Kuwait’s most strategic assets: the Great Burgan Oil field, the largest sandstone oil field globally, and the Al-Zour refinery, which is Kuwait’s largest capital investment in the country.

How is the company working towards achieving its net-zero strategies by 2050?

In 2020, we embarked on a transformative journey known as the reinvention of bp. As part of this transformation, we have set an ambitious goal to become a net-zero company by 2050 or even earlier and contribute to achieving global net-zero emissions. Our purpose is to reimagine energy for people and the planet, and under this new ambition, we aim to reshape bp from an international oil company focused solely on resource production to an integrated energy company focused on delivering solutions for our customers. bp’s new strategy revolves around three core areas: resilient hydrocarbons, convenience and mobility, and low-carbon energy, which collectively form an integrated energy company. These three focus areas encompass five growth engines consisting of bioenergy, convenience, electric vehicle (EV) charging, renewables, and hydrogen. Since outlining our strategy in 2020, we have made significant progress across all three areas and the growth engines, and we are on track to achieve the targets set for 2025.

What is your perspective on the current state of Kuwait’s oil and gas sector?

Kuwait is the 10th-largest oil producer globally and a prominent member of the Organization of the Petroleum Exporting Countries (OPEC). The Greater Burgan Field, which bp supports, accounts for approximately 50% of Kuwait’s total oil production. It is our most significant project, and we provide professional technical expertise, technology transfer, and support for overcoming short, medium, and long-term production challenges. At COP27, Kuwait committed to becoming a net-zero emitter from oil and gas by 2050, with the economy following suit by 2060. While various energy outlook scenarios project a decline in oil and gas demand in the coming decades, it will still remain a vital part of the global energy mix. Producers will compete to offer the cheapest and least carbon-intensive oil and gas, and Kuwait is well-positioned in this regard, considering its low carbon intensity and low cost per barrel.

Are there any specific developments expected in 2023 regarding this transition?

Over the past two years, bp has been on a transition journey, and we look forward to supporting Kuwait and Kuwait Petroleum Corporation (KPC) in their energy transition plans. In the Middle East and North Africa region, we are already partnering with several countries. In 2022, ADNOC, bp, and Masdar expanded their UAE-UK new energy partnership to explore the development of clean hydrogen hubs, with a total capacity of 1GW in the UAE and 1GW in the UK. In Oman, we signed a strategic framework agreement to support the potential development of a multiple-gigawatt, world-class scale renewable energy and green hydrogen project. Additionally, in Egypt, we signed a memorandum of understanding (MoU) with the government to explore the establishment of a new green hydrogen production facility in the country. bp will conduct studies to evaluate the technical and commercial feasibility of developing a large-scale green hydrogen export hub in multiple phases.